There was a “cautious start to the week with many investors locking down some strong gains ahead of key events that could change the outlook,” said Michael McCarthy, chief market strategist at CMC Markets.

Among Monday’s biggest drags was BHP, which fell 0.6 percent on the high likelihood of a labour strike at its Escondida mine in Chile.

After meetings last week, workers at the world’s largest copper mine rejected the company’s final contract offer and agreed to vote on whether to strike.

Investors shrugged off concerns about a potential strike, and were preparing to focus on a raft of coming economic reports that may indicate slowing growth in top metals consumer China.

Global miner Rio Tinto, which dropped 1.1 percent, will kick off Australian corporate earnings this Wednesday, reporting its January-June results.

General weakness in financial stocks weighed on the main board, with the sector index down 0.4 percent.

Commonwealth Bank of Australia and Australia and New Zealand Banking led the losses, down 0.6 and 0.5 percent respectively.

In contrast, wealth manager AMP closed over 4 percent higher, regaining much of its losses from Friday when it flagged the financial impact from the Royal Commission inquiry into financial sector misconduct.